Here’s the word many of you know very well by now: telematics. You’ve heard everyone talk about it from the OEMs to technical trainers to … me. I’ve been talking about it for three years, right? And as the theory goes, when telematics devices are fully entrenched in vehicles, it will completely change the way accidents are handled:

Someone is in an accident and the vehicle’s telematics devices notifies the manufacturer. The manufacture is now the one taking the first notice of loss. Then, the “OnStar effect” kicks in: “Mr. Anderson, we see that your vehicle has been damaged. Are you alright? We can get your vehicle delivered to a body shop, which is nearby; would you like you like to use one of our certified collision repair centers?”

It’s that simple, right? Now all of a sudden, it’s the OEM that leads and initiates this process. And you’ve heard me say this before, but this is why OEM certifications and approvals are so crucial to not just surviving but thriving in this industry moving forward.

So, here’s the question I get constantly: “OK, Mike, you’ve talked about this for three years; when is it going to happen?” People seem skeptical, but let me tell you, there are three reasons why this is going to happen far sooner than you realize.

(Quick disclaimer: Everything in this article is my opinion, based on extensive research I’ve conducted on the subject.)

1. The Generational Shift.

The technology is ready—and already there. This is possibly the largest misnomer about the emergence of telematics; many, many people think that there simply aren’t enough vehicles capable of this straight-to-the-OEM communication. Well, that’s not true, my friends. Just about every manufacturer out there has its own version of the OnStar system. Go to a new car lot, and ask. They are there and ready for vehicle owners to use.

But until recently, the hindrance on adoption has been the willingness of drivers to get connected. Think of my 79-year-old dad; he doesn’t want Big Brother knowing where he’s at. He doesn’t even like giving out his social security number at the doctor’s office! It’s very personal stuff, people.

Then there’s my 27-year-old niece. She’s not concerned. If she hears an insurer or manufacturer say that if they are able to monitor her vehicle she can get dollars off her insurance premium, she is all in.

And I think it’s been covered enough in this magazine for me not to have to tell you that it’s my niece who is your customer of today and tomorrow. There’s a generational shift taking place, and with that, there’s a shift in the adoption of technology. The younger generations want this technology, they want these features, and they will change that landscape very quickly

2. Internet connection.

So, here was one of the biggest hangups with telematics in the past—there needed to be a way to connect the vehicle to the manufacturer. Now, with the advent of 4G networks, that’s possible, mainstream, and affordable. You can get it with GM for as low as $24.99 per month. And that offers more connectivity than just the telematics aspect of things.

You account for that generational shift—a generation that despite perceptions has still demonstrated through multiple studies that they value owning a vehicle—and the affordability and availability of the 4G networks, and you have all the makings of this taking off.

That’s particularly true when you take into account the most important and practical reason telematics will come on quickly:

3. First response time.

A lot of people ask what’s driving the concept of telematics and the connected car. Well, it’s really, really simple: driver safety. You’ve likely heard the statistics about the amount of accident-related deaths each year, and the National Highway Traffic Safety Administration has reported that 94 percent of all accidents are human error. Why wouldn’t OEMs put more technology into vehicles to keep drivers safe? And why wouldn’t drivers want that technology?

But let’s focus on the basic post-accident aspects of it. Sure, if you live in parts of California, the response time from emergency medical technicians (EMTs) can be fairly quick—roughly 6 or 7 minutes on average. But if you live in less populated areas, those times jump to anywhere between 22 and 32 minutes, often because no one is notified. Telematics can drastically lower those response times and save lives. It’s that simple.

So, there are three clear reasons that telematics is coming at you faster than you might think, and when it happens—and when first notice of loss is with the OEM—your method for getting those vehicles in your door will likely need to change. If you want to thrive in this industry for years to come, you need to be prepared for this switch, you need to be ready, and you need to have an OEM focus. It’s not a question of when this will happen, but of who—who will be the ones to step up?

Southwest Collision Auto once again has proven to be the BEST all around in taking care of my car repairs. Chris Hansen and his colleagues were most helpful in looking at the problem, making their recommendation and putting words to action as they fixed the problem all under 30 minutes. I would highly recommend Southwest Collision Auto to anyone. They are both honest in their dealings, good at their word.and the icing on the cake, they have a wonderful and professional front desk employees.

Mike Knowles

5 out of 5 stars

posted 1 month ago

So here I am again for my 2nd time to have Southwest collision repair my truck. Going through an insurance company can be a real pain in the but and time-consuming etc. Well Patrick has done nothing but help me through the entire process from start to finish. My truck looks amazing as they did a great job and they also give you a life time warranty on the paint as well, meaning in this AZ heat if it ever fades or the clear coat peals or anything else that causes the paint to peal etc is 100% life time warranty as long as you own the vehicle. Talk about piece if mind. Lol... Anyways not only do they stand behind their work but they really go above and beyond for the customer. Patrick has been amazing for me and is just very reliable and communicates well with me on each step and never rushes me to finish our sometimes 30 min phone conversations etc. So thanks again Southwest Collision! :)

Enviro-Clean Abatement Services

5 out of 5 stars

posted 4 months ago

I used southwest collision when I was rear ended. They were great to work with! Provided me with regular updates and dealt with the adjuster from the insurance company. Did great work and had amazing customer service! Would recommend to anyone! Thanks again!

Parsa Sameti

5 out of 5 stars

posted 2 months ago

I worked with David he is great. he is a perfectionist and he’s team does a clean job. the staff is friendly and the overall experience was good.

Brad Winkler

5 out of 5 stars

posted 5 months ago

Was referred to Southwest by Tempe Autohaus. Very pleased with the service and quality of work. Victor was very helpful. Staff was very friendly and informative. Took some time for repairs, but of no fault of theirs. Had to have a door shipped from Germany, plus insurance took their sweet time. Would highly recommend Southwest.